DOCSLIB.ORG

Economic Effects of China's Outward Foreign Direct Investment in South

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Economic Effects of China's Outward Foreign Direct Investment in South Economic Effects of China’s Outward Foreign Direct Investment in South Africa and Nigeria ––– a GTAP-FDI Model Assessment Wen Jin “Jean” Yuan Introduction China’s outbound foreign direct investment (OFDI) activities in Sub-Saharan Africa (SSA) has raised much interest in recent years, mainly due to its rapid growth in the past couple of years. According to the latest Chinese official statistics, China’s stock of OFDI in SSA amounted to $39.9 billion in 2017, an increase from $11.7 billion from 2010 (China National Statistical Bureau, 2017). Academic sources have tried to identify the reasons behind the increasing amount of Chinese OFDI to SSA. For instance, Dollar (2016) finds that Chinese OFDI to Africa is mainly attracted to countries with large market size and rich in natural resources, and this pattern generally corresponds to the global OFDI pattern into Africa. The author indicates that part of the motivation of increasing Chinese OFDI in Africa is to acquire natural resources (e.g. oil, copper and cobalt, etc) that were important in facilitating China’s economic growth, and these deals mainly involve investment from Chinese state-owned enterprises (SOEs). USITC (2017) finds that there is an increasing amount of Chinese investment into SSA’s infrastructure sector and by helping SSA countries develop their transport corridor system, China has “increased its access to natural resources needed to boost its own economic growth”. Meanwhile, such investment also has been boosted by the Chinese government’s efforts to diversify the investment of its large volume of foreign reserves. Meanwhile, there are some empirical literature available analyzing the pattern and determinants of Chinese OFDI into SSA. Using cross-sector regression analysis, Dollar, Tang and Chen (2018) find that Chinese firms tend to invest in the more skill-intensive sectors in skill-abundant countries, but in capital- intensive sectors in capital-scarce countries. These patterns are mostly observed in politically unstable countries, indicating stronger incentives to maximize profits in tougher environments. Using panel data regressions, Cheung, Haan, Qian and Yu (2012) find that China's outward direct investment (ODI) is found to respond to economic determinants that include the market seeking motive, the risk factor, and the resources seeking motive. It is also affected by the intensity of trade ties and the presence of China’s contracted projects. The authors also show that a host country's natural resources have an impact on China's decision on how much to invest in the country rather than on whether to invest in the country or not. However, there are very empirical literature available using computable general equilibrium (CGE) models to analyze the pattern of China’s increasing OFDI into SSA, and its impact on output, trade, investment and employment in China and host SSA countries. This paper tries to bridge this gap by analyzing increasing Chinese OFDI activities in two big SSA economies – South Africa and Nigeria, and its impact on output, trade, investment in these two SSA countries. A CGE model incorporates real production, consumption, and international trade and investment data of the economies into a rigorous theoretical framework. The modeling framework allows comparison of different economies in two environments: one in which the base values of policy instruments such as tariffs and investment restrictions are unchanged, and one in which these measures are changed, or “shocked”, to reflect the policies that are being studied (USITC, 2016). The CGE model framework used in this paper is the Global Trade Analysis Project (GTAP)-FDI model first developed by Lakatos and Fukui (2014), and improved by Tsigas and Yuan (2018). The model incorporates FDI stock and foreign affiliate sales data into the standard GTAP model framework, and allows sector-specific capital to move across borders. The paper is organized as follows. Section 2 describes the different patterns of Chinese OFDI in South Africa and Nigeria. Section 3 describes the framework of the GTAP-FDI model as well as the data and simulation scenarios. Section 4 presents the simulation results both at the aggregate and sectoral levels. Section 5 concludes. Chinese OFDI in South Africa and Nigeria As indicated above, Chinese OFDI stock to SSA increased more than threefold from 2010 to 2017. Meanwhile, in recent years, China's stock of OFDI in SSA was concentrated in a few markets –– in 2017, for example, the top recipient markets for China’s OFDI were South Africa, the Democratic Republic of Congo(DRC), Zambia, Nigeria, Angola and Ethiopia, jointly accounting for 53.6 percent of total Chinese OFDI stock in SSA (table 1). Table 1 Chinese outward FDI position in SSA, top destinations, 2010-2017 2010 2011 2012 2013 2014 2015 2016 2017 Million $ Total SSA 11678 14618 19799 23952 29003 31217 36046 39928 South Africa 4153 4060 4775 4400 5954 4723 6501 7473 DRC 631 709 970 1092 2169 3239 3515 3884 Zambia 944 1200 1998 2164 2272 2338 2687 2963 Nigeria 1211 1416 1950 2146 2323 2377 2542 2861 Angola 352 401 1245 1635 1214 1268 1633 2260 Ethiopia 368 427 607 772 915 1130 2001 1976 Source: China National Statistical Bureau, 2017 Statistical Bulletin of China's Outward Foreign Direct Investment, 2018. Total Chinese FDI stock in SSA are not provided by China National Statistical Bureau. Total SSA position were calculated by subtracting positions in North African countries (Morocco, Algeria, Tunisia, Egypt and Libya) from total Chinese OFDI stock in Africa. Among the top recipients of Chinese OFDI in SSA, the patterns of Chinese OFDI differ considerably. Figure 1 compares the sectoral composition of Chinese OFDI in South Africa and Nigeria using transaction-level data from the American Enterprise Institute (AEI), which offers more sector-level details on Chinese OFDI compared to data from Chinese official statistics from China’s National Statistical Bureau: in more advanced economies such as South Africa, Chinese OFDI have been more diversified across sectors, while Chinese OFDI was primarily concentrated in the infrastructure sectors in Nigeria. Figure 1: figure 1a China OFDI Nigeria, 2014-2018 16% Other 6% Autos 53% 6% Gas Hydro 19% Rail figure 1b China OFDI South Africa, 2014-2018 16% 29% Other Autos 28% Construction Oil 27% Source: AEI, China Global Investment Tracker According to transaction-level FDI data from the AEI, from 2014 to 2018, Chinese firms in different industries have committed to invest $30.7 billion in Nigeria. As can be seen from figure 1a above, more than 50 percent of the aforementioned Chinese OFDI went to the rail sector from 2014 to 2018. In 2010, the Nigerian government developed the National Integrated Infrastructure Master Plan (NIIMP), which is a 30-year roadmap aiming at building world-class infrastructure (China-Africa Trade Research Center, 2018). Nigeria plans to invest $127 billion in infrastructure from 2014 to 2019. However, from 2014 to 2018, the allocated funding from the Nigerian government for infrastructure projects totaled only $11.5 billion, less than 10 percent of the planned amount (Usman 2013; China-Africa Trade Research Center, 2018). This big infrastructure funding gap creates opportunities for Chinese capital to enter Nigeria’s infrastructure sector. For example, China Civil Engineering Construction Company (CCECC), a Chinese SOE and a subsidiary of China Railway Construction Corporation, has invested in multiple rail projects across Nigeria, including the inner-city light rail projects in Abuja and Lagos and a new coastal railway connecting Lagos to Calabar (Chen, 2018). According to the project-level data from AEI, CCECC signed contracts with the Nigerian government committing to invest in six railway projects in Nigeria from 2014 to 2018, with a total value amounted to $16.4 billion (AEI, 2018). China has also begun to channel investment into Nigeria’s renewable energy sector (figure 1a). In 2017, the Nigerian government awarded a contract of $5.8 billion to build a hydropower station for electricity generation to the state-owned China Civil Engineering Construction Corporation (EIU, 2017; figure 1a). The project is scheduled to complete in six years, and is aimed to narrow the huge energy deficit that is one of the major obstacles to Nigeria’s industrialization (EIU, 2017). In South Africa, by comparison, Chinese OFDI has been more diversified and has targeted not only natural resources but also the autos and construction sectors (figure 1b). According to transaction-level FDI data from the AEI, from 2014 to 2018, Chinese firms have committed to invest $4.6 billion South Africa and the committed OFDI spread across a couple different industries (AEI, 2018). In 2017, for example, China Minsheng Investment channeled $1.2 billion of Greenfield investment to build affordable housing in South Africa. In 2016, Beijing Automotive Group committed to invest a total of $1.3 billion in a vehicle assembly plant in South Africa. Model and Simulation Scenarios The GTAP-FDI Model The GTAP-FDI model is a CGE model which incorporates FDI stock and FAS data. It is a comparative static, multi–regional and multi–sector CGE model which differentiates between domestic and foreign- owned firms both on the demand and supply side (Lakatos and Fukui, 2014). The major difference between the GTAP-FDI and the standard GTAP model is that the former incorporates an additional level of nesting representing the region of ownership. Figure 1 sketches production linkages in the GTAP-FDI model using South Africa’s transportation equipment sector as an example. In the first stage, aggregate supply of motor vehicles in South Africa consists of domestically produced and imported motor vehicles. In the second stage, South Africa’s domestically produced motor vehicles are the aggregate produced by South African-owned firms or foreign-owned firms in South Africa. Expenditures on imported motor vehicles are allocated across different sources, and finally allocated across ownership categories to various multinational companies in economies exporting motor vehicles to South Africa.
Load more

Recommended publications
  • Double Taxation Treaty Between Ireland and the Republic of South Africa
    Double Taxation Treaty between Ireland and South Africa The Government of Ireland and the Government of the Republic of South Africa, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and to promote and strengthen the economic relations between the two countries, Have agreed as follows: 1 Article 1 Persons Covered This Convention shall apply to persons who are residents of one or both of the Contracting States. 2 Article 2 Taxes Covered 1. This Convention shall apply to taxes on income and capital gains imposed on behalf of a Contracting State or of its political subdivisions, irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and capital gains all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property. 3. The existing taxes to which this Convention shall apply are: a. in Ireland: i. the income tax; ii. the corporation tax;and iii. the capital gains tax;(hereinafter referred to as "Irish tax"); and b. in South Africa: i. the normal tax; and ii. the secondary tax on companies;(hereinafter referred to as "South African tax"). 4. The Convention shall apply also to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws.
    [Show full text]
  • Introduction Historical Context
    INTRODUCTION China-Africa ties have expanded beyond trade and investment in extractive industries to engagement in telecommunications, infrastructure, manufacturing, finance, media, agriculture and peace and security issues. HISTORICAL CONTEXT While not as well documented as Africa’s links with Europe, China-Africa relations date back to the Ming Dynasty (1368-1644) when a series of expeditions reached East Africa under the command of Admiral Zheng He, at roughly the same time as the Portuguese were exploring Africa’s Atlantic coast. However, formal political relations were only forged during the early years of the founding of the People’s Republic of China (1949), which intersected with the first wave of African independence. The Five Principles of Peaceful Coexistence were originally established in 1954 by India’s prime minister, Jawaharlal Nehru, and the Chinese premier, Zhou Enlai. These principles rose to popularity during the 1955 Bandung Conference – which paved the way for the founding of the Non-Aligned Movement – and have become an important basis for China’s foreign policy and its relations with Africa and Asia. China’s support for Africa’s liberation also played an influential role in shaping the outcomes of newly independent states. 2015 is also 60 years since the 1955 Bandung Asian-African conference, a turning point of world history when for the first time representatives of the former colonised nations united and proposed alternatives to a world order dominated by superpowers. - Remarks by African Union Commission Chairperson, Nkosazana Dlamini-Zuma, 30 January 2015. …The relationship between ourselves and China is founded, as the Prime Minister reminded us recently, on four basic principles: treating each other sincerely and equally; consolidating solidarity and mutual trust; jointly pursuing inclusive development; and promoting inventive practical cooperation between our countries.
    [Show full text]
  • Sierra Leone and Conflict Diamonds: Establshing a Legal Diamond Trade and Ending Rebel Control Over the Country's Diamond Resources
    SIERRA LEONE AND CONFLICT DIAMONDS: ESTABLSHING A LEGAL DIAMOND TRADE AND ENDING REBEL CONTROL OVER THE COUNTRY'S DIAMOND RESOURCES "Controlof resourceshas greaterweight than uniform administrativecontrol over one's entire comer of the world, especially in places such as Sierra Leone where valuable resources are concentratedand portable.' I. INTRODUCTION Sierra Leone2 is in the midst of a civil war that began in 1991, when the Revolutionary United Front (RUF) invaded the country from neighboring Liberia.3 RUF rebels immediately sought control over one of the country's richest resources--diamonds.4 Since gaining control over the most productive diamond fields, the rebels have at their fingertips an endless supply of wealth with which to fund their insurgencies against the Government of Sierra Leone.' The RUF rebels illicitly trade diamonds for arms in open smuggling operations. 6 Diamonds sold by the RUF, in order to fund the rebel group's military action in opposition to Sierra Leone's legitimate and internationally recognized government, are called "conflict diamonds."7 1. WIulIAM RENO, WARLORD POLITICS AND AFRICAN STATES 140 (1998). 2. Sierra Leone is located on the west coast of Africa north of Liberia and south of Guinea. The country has 4,900,000 residents, almost all of whom belong to one of 13 native African tribes. Country: Sierra Leone, Sept. 3,2000, availableat LEXIS, Kaleidoscope File. One of the primary economic activities in Sierra Leone is mining of its large diamond deposits that are a major source of hard currency. Countries that predominantly import goods from Sierra Leone include Belgium, the United States, and India.
    [Show full text]
  • ICS South Africa
    Integrated Country Strategy South Africa FOR PUBLIC RELEASE FOR PUBLIC RELEASE Table of Contents 1. Chief of Mission Priorities ................................................................................................................ 2 2. Mission Strategic Framework .......................................................................................................... 4 3. Mission Goals and Objectives .......................................................................................................... 6 4. Management Objectives ................................................................................................................ 12 FOR PUBLIC RELEASE Approved: August 22, 2018 1 FOR PUBLIC RELEASE 1. Chief of Mission Priorities There are tremendous opportunities to broaden U.S. engagement in South Africa which stand to benefit both countries. Over 600 U.S. companies already operate in South Africa, some for over 100 years; furthermore, many of them use South Africa as a platform for operations and a springboard for expansion into the rest of Africa. South Africa is therefore the single most critical market hub to a population expecting to double to two billion people in the next 30 years. While some resentment of the United States continues from the apartheid era, there is also recognition of American activism that helped end apartheid. In polls, the United States is seen very favorably by every day South Africans, who respond positively to American politics, culture, and goods. South Africa’s economy is the most
    [Show full text]
  • A Truth Commission for East Timor: Lessons from South Africa?
    04 Jenkins (JG/d) 6/11/02 11:41 am Page 233 © 2002 OXFORD UNIVERSITY PRESS A TRUTH COMMISSION FOR EAST TIMOR: LESSONS FROM SOUTH AFRICA? Catherine Jenkins* ABSTRACT East Timor finally became an independent state on 20 May this year. In its continuing quest for justice for the victims of the many human rights violations that took place during the period of the Indonesian occupation, it has pressed its claim for an inter- national criminal tribunal and for criminal trials both in Indonesia and in East Timor itself. It has also established a Commission for Reception, Truth and Reconciliation, which has recently begun work. This paper considers what the East Timorese Com- mission can hope to achieve and examines whether any lessons should be drawn by it from the experience of the South African Truth and Reconciliation Commission. 1 INTRODUCTION At the end of May 2001, Thabo Mbeki, President of the Republic of South Africa, announced that the South African Truth & Reconciliation Commission [‘TRC’], established in 1995, would finally close its doors.1 A few days later, the results of a survey of 3,727 South Africans carried out by a Cape Town NGO2 revealed that 81 per cent of black South Africans had never eaten a meal with a white person; that 56 per cent of black South Africans thought whites were untrustworthy; and that just over half of black South Africans found it hard to imagine being friends with a white person. Truth and reconciliation commissions are now often proposed in con- nection with ‘nation-building’ projects, yet the results of this South African survey seem to suggest that some caution or circumspection may be appropriate.
    [Show full text]
  • Residence and Visa Program
    Malta Residence and Visa Program Malta has been a member of the European Union (EU) The Malta Residence and Visa Program (MRVP) was since 2004 and is a stable, neutral and highly respected implemented in 2015 under the Immigration Act (Cap. 217). country. Located in the middle of the Mediterranean Sea, The legal basis regarding the MRVP is contained in the the Maltese archipelago has risen to be one of Europe’s Malta Residence and Visa Program Regulations, 2015. leading investment locations, driven by its reputation for These Regulations allow duly qualified, reputable third stability, predictability and security. This has made Malta country nationals (non EU, EEA or Swiss nationals) and stand out among other global business and financial their families, who make a contribution to the economic centers. The island nation comprises of three islands: development of Malta, to be granted a Maltese Residence Malta, Gozo and Comino, with a total population of over Permit, allowing the individuals the right to reside, settle 400,000 inhabitants occupying an area of 316 km2. The and stay indefinitely in Malta, with free movement of travel national language is Maltese but the official languages of within the Schengen area. the country are both Maltese and English. Malta boasts an excellent climate, friendly people and a low crime rate. Requirements and are not married. Additionally, parents or grandparents of the main applicant or their spouse may also be included The main applicant must be at least 18 years of age to qualify in the application as dependents if they are not economically and must provide an affidavit declaring that from the date active and are principally dependent on the main applicant.
    [Show full text]
  • South Africa
    NATIONAL REPORTS Nuclear verification in South Africa Verifying South Africa's declared nuclear inventory, and the termination of its weapons programme, was a complex task by Africa's accession to the Treaty on the terial involved in the programme had been recov- Adolf von Non-Proliferation of Nuclear Weapons (NPT) on ered and placed under safeguards. Baeckmann, 10 July 1991 was promptly followed by the sign- Over the months that followed, the team Garry Dillon, and ing of a comprehensive safeguards agreement with thoroughly examined detailed records and veri- Demetrius the IAEA on 16 September 1991. Four days later, fied the inventories of nuclear materials in South Perricos the IAEA General Conference adopted a resolu- Africa. As a result, it was able to conclude that tion aimed at ensuring early implementation of there were no indications to suggest that the the • safeguards agreement and verification of initial inventory is incomplete or that the South the completeness of the inventory of South Af- African nuclear weapons programme had not rica's nuclear installations and material. been completely terminated and dismantled. In November 1991, a team of senior IAEA This article highlights the IAEA's verifica- safeguards officials specially appointed by the tion activities in South Africa and the main ac- Agency's Director General carried out the first tivities associated with its assessment of the ter- inspections under the comprehensive safeguards mination of South Africa's former nuclear weap- agreement. The activities to verify the correct- ons programme. ness of South Africa's declared inventory of nu- clear material extended over several months and involved long-established measures.
    [Show full text]
  • Section 3: China's Strategic Aims in Africa
    SECTION 3: CHINA’S STRATEGIC AIMS IN AFRICA Key Findings • Beijing has long viewed African countries as occupying a cen- tral position in its efforts to increase China’s global influence and revise the international order. Over the last two decades, and especially under General Secretary of the Chinese Com- munist Party (CCP) Xi Jinping’s leadership since 2012, Beijing has launched new initiatives to transform Africa into a testing ground for the export of its governance system of state-led eco- nomic growth under one-party, authoritarian rule. • Beijing uses its influence in Africa to gain preferential access to Africa’s natural resources, open up markets for Chinese exports, and enlist African support for Chinese diplomatic priorities on and beyond the continent. The CCP flexibly tailors its approach to different African countries with the goal of instilling admira- tion and at times emulation of China’s alternative political and governance regime. • China is dependent on Africa for imports of fossil fuels and commodities constituting critical inputs in emerging technology products. Beijing has increased its control of African commodi- ties through strategic direct investment in oil fields, mines, and production facilities, as well as through resource-backed loans that call for in-kind payments of commodities. This control threatens the ability of U.S. companies to access key supplies. • As the top bilateral financier of infrastructure projects across Africa, China plays an important role in addressing the short- age of infrastructure on the continent. China’s financing is opaque and often comes with onerous terms, however, leading to rising concerns of economic exploitation, dependency, and po- litical coercion.
    [Show full text]
  • Can Africa Compete with China in Manufacturing? the Role of Relative Unit Labour Costs
    DOI: 10.1111/twec.12603 ORIGINAL ARTICLE Can Africa compete with China in manufacturing? The role of relative unit labour costs Stephen S. Golub1 | Janet Ceglowski2 | Ahmadou Aly Mbaye3 | Varun Prasad1 1Swarthmore College, Swarthmore, PA, USA 2Bryn Mawr College, Bryn Mawr, PA, USA 3Universite Cheikh Anta Diop, Dakar, Senegal 1 | INTRODUCTION Economic ties between China and Africa have intensified in recent years, with bilateral trade growing considerably faster than total trade for both parties. The effects of China’s rising involvement in Afri- can economies are controversial (Asongu & Aminkeng, 2013; Brautigam, 2009; De Grauwe, Houssa, & Piccillo, 2012; Eisenman, 2012; Pigato & Tang, 2015; Tull, 2006). On the positive side, China’s demand for African raw materials and its investments in African infrastructure contributed to Africa’s improved economic growth in the 2000s. On the other hand, trade with China does little to promote and may even inhibit African structural transformation as booming exports of primary products exac- erbate Africa’s dependence on capital-intensive minerals and fuels while China’s exports of labour- intensive manufactures create strong headwinds for Africa’s meagre industrial base and formal employment. Still, manufacturing wages in China have been rising quickly in recent years, potentially creating new opportunities for low-cost producers. This paper examines whether African countries can develop labour-intensive manufacturing exports, taking advantage of rising wages in China. Our principal means of assessing the competitiveness of sub-Saharan Africa’s (SSA) manufac- turing sector are measures of relative unit labour costs (RULC). We compare unit labour costs (ULCs) in SSA manufacturing to those in China.
    [Show full text]
  • Maldives Brochure
    MALDIVES SPECIALIST COLLECTION SPECIALIST OVER 40 YEARS OF TRUSTED TRAVEL EXPERIENCE EXPLORE DISCOVER EXPERIENCE World class Underwater beauty, An oasis of resorts crystal clear lagoons & intimate www.thompsons.co.za snowy white beaches islands THIS WAY TO PARADISE WHY MALDIVES WITH THOMPSONS? Discover the sunny side of life, all year round in an unspoiled paradise of magical islands scattered like tiny white pearls in the Indian Ocean. Each island is encircled by their own reef housing spectacular underwater life. Indulge yourself in the endless water- based adventure sport activities, island excursions or picnics on sandbanks and much more. Every encounter is an opportunity to discover paradise and what better way than with Thompsons, who can create innovative tailor-made holidays for your specific budget and requirements. #letsbepersonal and say, ‘Pack your bags and experience the colourful side of life’. TRAVEL WITH CONFIDENCE WITH A GLOBAL COMPANY With 40 years of trusted travel experience you will receive expert advice. No request too large, no detail too small. Thompsons Holidays, a division of Cullinan Holdings Group ICON INDEX and a member of THE TRAVEL CORPORATION, a fourth generation family owned group. FAMILY PLAYTIME Our financial stability is the key to a relaxed holiday. UNRIVALLED VALUE FOR MONEY GOLF ON TRIED AND TESTED HOLIDAYS As the largest South African tour operator our greater buying power means you get the best deal on your holiday, unrivalled value for money SPA and unexpected bonus offers. WE ARE WITH YOU 24/7 With you all the way – our care line is HONEYMOON / COUPLES your friend in an emergency.
    [Show full text]
  • Ethnic Conflict in Papua New Guinea
    Asia Pacific Viewpoint, Vol. 49, No. 1, April 2008 ISSN 1360-7456, pp12–22 Ethnic conflict in Papua New Guinea Benjamin Reilly Centre for Democratic Institutions, Australian National University, Canberra, ACT 0200, Australia. Email: [email protected] Abstract: On many measures of ethno-linguistic diversity, Papua New Guinea is the most frag- mented society in the world. I argue that the macro-level political effect of this diversity has been to reduce, rather than increase, the impact of ethnic conflict on the state. Outside the Bougainville conflict, and (to a lesser extent) the recent upsurge of violence in the Southern Highlands, ethnic conflicts in Papua New Guinea have not presented a threat to national government. In contrast to most other ethnically diverse societies, the most consequential impacts of ethnic conflict in Papua New Guinea are at the local level. This paper therefore examines the disparate impacts of local- and national-level forms of ethnic conflict in Papua New Guinea. Keywords: diversity, elections, ethnic conflict, Papua New Guinea Papua New Guinea combines two unusual fea- impact of ethnic conflict on the state. The reason tures which should make it a case of special for this is relatively straightforward: outside the interest to scholars of ethnicity and ethnic con- Bougainville conflict and (to a lesser extent) the flict. First, it boasts one of the developing recent upsurge of violence in the Southern High- world’s most impressive records of democratic lands, ethnic conflicts in Papua New Guinea longevity, with more than 40 years of continu- have not presented a threat to national govern- ous democratic elections, all of them chara- ment.
    [Show full text]
  • Saudi Arabia-South Africa Economic Relations
    Saudi Arabia-South Africa Economic Relations Information contained in this document is vetted and updated. For inquiries, suggestions, or more information, please contact the Center for Information and Research, Council of Saudi Chambers. Tel: 00966112182240, Fax: 00966112182279. Saudi Arabia-South Africa Economic Relations South Africa Kingdom of Saudi Arabia Area: 1,221,037 km2 approximately. Area: 2 million km2 approximately. Capital: Pretoria Capital: Riyadh Located in South West Asia. KSA is bordered Located in Southernmost Africa. It is by Iraq and Jordan in the North; Kuwait in bordered by Namibia, Botswana, the North East; Qatar, United Arab Emirates Location: Zimbabwe, Mozambique and Swaziland. Location: It surrounds the kingdom of Lesotho. and Bahrain in the East; Yemen and Oman in the South East, and the Red Sea in the West. Political Political Federal Republic Monarchy System: System: Head of Head of State: Jacob Zuma King Salman bin Abdulaziz Al Saud State: Language English, Zulu Language Arabic Population: 55.8 mn approximately (2016 estimate) Population: 32 mn approximately (2016 estimate) ccTLD: . ZA ccTLD .SA Currency: South African rand ( ZAR 1 = SAR 0.262) Currency: Saudi Riyal (SAR 1 = ZAR 3.80) Saudi-South African Diplomatic Relations: 1. Saudi Arabia has official representation in South Africa; the Saudi Embassy in Pretoria. 2. South Africa has official representation in Saudi Arabia; the South African Embassy in Riyadh; South African Consulate General in Jeddah. 3. The Saudi-South African Committee, led by Ministry of Commerce and Investment (KSA side). Saudi-South African Agreements: 1- The Saudi-South African Business Council. 2- The agreement on avoidance of double taxation between Saudi Arabia and South Africa.
    [Show full text]